Businesses yet to feel any positive effect in current pro-business regime: President RCCI

Two weeks ago, BR Research met Dr Shimail Daud Arain--a medical doctor by profession who is currently the President of the Rawalpindi Chamber of Commerce and Industry (RCCI). The Rawalpindi Chamber is one of the oldest in the country and has about 5,000 members, of which almost 20 percent are corporate members whereas the rest are from SME sector.
In this interview, Shimail talks about the strengthening of industry-academia linkages; the need and means to discover new markets and the government's performance so far. Our conversation starts off from the recent initiatives that the RCCI has been taking to promote Pakistani exports in the region and elsewhere in the world. "We hold exhibitions around the world, where our iconic exhibition is the 'Made in Pakistan' exhibition that we have been holding for the last four years. In these exhibitions we take all of the Pakistani products from all over the country-and not just from Rawalpindi-and try to have them established as a brand in the host country," says Shimail.
Following their experience of holding exhibitions in India, Nepal, Bangladesh, Afghanistan and England--places from where Pakistani producers got good response from-Shimail says the Chamber is focusing on Central Asia in its upcoming exhibition this year. Next year's 'Made in Pakistan' exhibition will be held in Mauritius. Targeting non-traditional markets is good, but are you also pitching non-traditional products in the 'Made in Pakistan' exhibitions? BR Research inquires. "Yes indeed", comes the reply. Our participating firms come from across various industries and trades, says Shimail.
"For instance, when we go to Mauritius next year, we would be giving space to Nadra. Nadra is already exporting services in a few African countries; and it will be a part of this year's exhibition in Central Asia. It is a non-traditional item," he said, adding that "another non-traditional item that is a part of our exhibitions is arms, sports and hunting. Similarly, when we went to Afghanistan, we took firms from construction industry, consumer products, textiles, cement and electronic industry." If Pakistani products are appreciated and they receive a good response, then what's keeping the country from tapping the potential? BR Research asks. "Well, we have not even scratched the surface in non-traditional export products; and for that one of the most important steps that needs to be taken is that all the major chambers should join hands in building the export momentum behind non-traditional markets and products by building the critical mass," says Shimail.
Shimail-who is also the Executive Member of Punjab Vocational Training Institute's Rawalpindi wing-asserts that another important step in harnessing the non-traditional potential is the business-academia linkage. He says the need to strengthen industry-academia link isn't just for technological advancements, but also for economies of scale, finding new markets and extending new products to existing markets. To this end, the RCCI has already begun its spadework.
"We have signed MoU with fifteen universities. We have been working very closely with universities like MAJU, NUST, COMSATS, Fatima Jinnah University, where their students liaise with us on different projects, events, business plans and research initiatives," he said.
Shimail says that the RCCI has developed its own research and development wing with the help of Center for International Private Enterprise. "Our research department doesn't only provide research for the Chamber itself but liaise with academia as well," he said.
"Having said that, the university faculties in Pakistan lack the necessary depth of knowledge that is why we have started partnering with other non-academic research institutes and think tanks. One such initiative is our partnership with a think tank called Policy Research Institute of Market Economy," Shimail added, explaining the need to partner with policy entrepreneurs.
This takes the conversation to responsibilities of the government and how well it is performing its responsibilities. "Sadly, instead of going to the countries and saying well, this is 'what we can sell, do you want buy this, we go outside get the dollars, which we then spend on roads and metros," says Shimail.
"Compared to the commercial counsellors of other countries Pakistan's commercial counsellors are doing nothing, he said, adding that India hires marketing people as its commercial counsellors, who visit the markets every day and try to figure out which product is being sold and what price and whether his/her country can provide the same at lower prices. But Pakistani commercial counsellors abroad are not even helpful in responding to any query; let alone the lack of self-initiative on their account.
PML-N'S PERFORMANCE SO FAR When it comes to reviewing the performance of the government so far, Shimail minces no words: "this government has spent most of its time in fire fighting because of which macroeconomic stability is visible. There were many hopes that this government would be business friendly, but so far there is nothing visible to that effect. Some benefits may have accrued to the big business, but the mid and lower level businesses are yet to see any positive impact, if anything the impact has been negative so far," he said.
Commenting on the budget, Shimail said while the government has been focusing on increasing the taxes, they continue to rely on those that are already in the tax net, which is a disincentive to those in the formal sector. But, Shimail says economic mismanagement is not just the problem of one government; instead it's the failure of successive governments, and indeed the society that has allowed this to happen. Giving examples from a field that is quite close to his heart, the health sector, Shimail maintains that the "60 to 80 percent of the health sector services are being supplied by private sector as government services are either not available or are of inferior quality. But let's see what the government provides these private health institutions".
"The government does not support the health care market. A private sector secondary level health care provider pays commercial utilities, which is the highest slab. Then the land they acquire is commercial; the construction they do or the investment they make is not subsidised. Then there are 29-32 percent taxes on the import of medical equipment, from anesthesia machine to operation theatre light, table, ECG machine, cardiac monitor and you name it." "All this leads to higher of cost of doing services, which is eventually passed on to the patient. And yet no successive government has even bothered to care about this sector that is providing a basic service to humanity," said Shimail.